Download Marketing Foundations

Marketing
Foundations
Unit One
The Marketing Concept
• Marketing Concept: Focusing on satisfying
customers’ needs and wants in order to
make a profit
• Businesses must accomplish 3 activities:
o Identify needs of customers
o Develop and market products or services
o Operate a business profitably
When Customer Needs
are Not Satisfied
• When businesses do not consider customer
needs, it results in extra expenses of
marketing products
o They have to convince the customers to buy the
product
•
•
•
•
Increase in advertising
Price reductions
Rebates
Special displays
o This can lead to reductions in profit or even losses
for the business
`
Implementing the
Marketing Concept
• Identify the Market
o Market: the potential customers who share
common needs and wants (who have a
demand for a product/service) and are willing
and able to buy it
Types of Markets
• Consumer Market: all potential customers
who will buy the product for personal use
• Industrial Market: all potential customers
who will buy the product for business use
Implementing the
Marketing Concept Cont.
• Develop a Marketing Mix
o Marketing Mix: the blending of 4 marketing
elements by the business
•
•
•
•
Product
Place (Distribution)
Price
Promotion
The Marketing Mix
• Each element provides many alternatives to
better satisfy the market
• Product
• Anything offered to a market by the business to satisfy needs
• Physical products, services, and ideas
• Place
• The locations and methods used to make the product available
to customers
• Price
• The amount that customers pay and the methods of increasing
the value of the product
• Promotion
• Any form of communication used to inform, persuade, or remind
customers